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airBaltic seeks financial restructuring and fleet reduction
Latvian national carrier airBaltic is undergoing a major financial restructuring to avoid insolvency. The airline's business plan includes reducing its fleet from 54 to 36 aircraft and seeks 225 million euros in temporary financing alongside 100 million euros in new equity. To stabilize its position, the company aims to defer two interest payments and capitalize them into the principal debt. Bondholders have reportedly approved the capitalization of 380 million euros in bond interest.
The Latvian government is exploring ways to support the airline, including requesting permission from the Saeima to extend the repayment of an existing 30 million euro loan and potentially participating in new financing. Prime Minister Andris Kulbergs emphasized that while the state must act to prevent insolvency, it cannot be the sole financier and private investors must also participate.
Simultaneously, the Latvian Aviation Union (LAA) is calling for social guarantees for employees, warning that the planned operational optimizations and fleet reductions could lead to layoffs of up to 30% of the workforce. The union has criticized the lack of full transparency regarding the business plan during consultations.
Entities
AirBaltic · Andris Kulbergs · Latvia · Latvian Aviation Union · Latvian government · Saeima
Claims
What the coverage asserts, and how well corroborated each claim is across sources.
- [● 3 SOURCES] airBaltic aims to defer two interest payments and add them to the principal debt jauns.lv · pmo.ee · www.aripaev.ee
- [● 3 SOURCES] The Latvian Aviation Union estimates that up to 30% of employees could face layoffs pmo.ee · bnn.lv
- [● 2 SOURCES] The market price of airBaltic bonds has dropped by approximately 80% since the beginning of the year jauns.lv · pmo.ee
- [● 2 SOURCES] The Latvian government is seeking Saeima permission to extend the repayment period of an existing 30 million euro loan jauns.lv · pmo.ee
- [● 2 SOURCES] The airline requires 225 million euros in temporary financing and 100 million euros in new equity jauns.lv · pmo.ee
- [○ 1 SOURCE] Bondholders have approved the capitalization of 380 million euros in bond interest www.aripaev.ee
- [● 3 SOURCES] The airline's business plan includes reducing the aircraft fleet from 54 to 36 by year-end pmo.ee · bnn.lv
- [● 3 SOURCES] Prime Minister Andris Kulbergs stated that the state cannot be the airline's only financier and private investors must participate jauns.lv · pmo.ee · nra.lv